Federal Appeals Court Rules Against Insurer In STOLI Case

Federal Appeals Court Rules Against Insurer In STOLI Case

A recent news report explained that a “federal appellate court said Sun Life Assurance Co. of Canada has to pay bad faith damages for refusing to pay a $6 million death benefit, handing a victory to the life settlement market.”

The report, Appellate Court Says Sun Life Must Pay Bad Faith Damages In $6M STOLI Case, appeared in the October 14, 2016 edition of The Deal Pipeline.

The report further described that the “Wednesday, Oct. 12, decision by the U.S. Court of Appeals for the 7th Circuit in Chicago affirmed the judgment of the district court” in a case where the district court judge “sided with U.S. Bank National Association against Sun Life in a June 2015 decision” in a STOLI case where the bank prevailed on a “motion for judgment on its breach of contract claim as well as a counterclaim for declaratory judgment by Sun Life on its failure to plead an actual case or controversy between the parties.”

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